Postcodes 2264 and 2265 Research Factsheet 2nd Half 2018

The property market of postcodes 2264 and 2265 has
strengthened over the past 12 months to Q3 2018, by 6.4% to $593,000 for houses
and by 8.2% to $397,500. The Lake
Macquarie Local Government Area (LGA) recorded a median house price of
$570,000 and median unit price of $450,000, which is representative of an
annual (Q3 2017-Q3 2018) 1.0% strengthening in median house prices and a stable
unit market. Compared to the
Lake Macquarie City Council (LGA) the house market in postcodes 2264 and
2265 are a premium market,
from both entry price and capital growth perspectives. The unit market is more
affordable, yet with higher capital growth.

Median rent
has increased over the past 12 months by 20.0% for units, currently at $360 per
week in Q3 2018. This is in combination with a 46.7% increase in the number of
units rented, which suggests the need for more unit rental stock.

Strong
rental yields have been recorded in postcodes 2264 and 2265, currently at 3.7% (house) and 4.6%
(units) as of June 2018, much higher than Sydney Metro at 2.7% and 3.7%,
respectively. Combined with downward trending vacancies rates from 2.9% (June
2017) to 2.7% (June 2018), the market continues to present itself as a highly
more affordable alternate desirable location for investment compared to Sydney
Metro.

Postcodes 2264 and 2265 will invest
approximately $106.8M into future developments in 2018, with a focus on
improving infrastructure ($51.8M or 48.5%). This is followed by commercial
($26.9M or 25.2%), residential ($21.6M or 20.3%) and industrial projects ($6.3M
or 5.9%). This strategy is key to the market as it will stimulate commercial
activity and increase local jobs, which leads to sustainable economic growth in
the near future.